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In this paper, a partitioning scheme based on geographical location is proposed to divide the whole power system into subsystems and a harmony system. A spatial parallel algorithm for transient stability simulation (TSS) is presented to compute all the subsystems simultaneously. Then the subsystems and the harmony system are solved alternately and iteratively. Several optimization techniques are adopted to further improve the efficiency. Real-time simulation is achieved for a large power system with 1923 nodes, 2280 branches, and 173 generators on a PC cluster. The test results demonstrate that the proposed algorithm is lit for real-time TSS for large-scale power systems.